It appears $38 is the new strange attractor for WTI Crude oil as it coincides with the last two weeks' "opposites" inventory data releases. Brent and WTI continue to hug each other for the 3rd day in a row. We await tonight's API inventory data (expected to see a 2.5mm draw) for the next move in crude (and therefore US equities).
Via Seabreeze Partners' Doug Kass,
"I begin every day by asking three important questions. One among them is this: 'In a paperless and "cloudy" world, are we as investors and citizens as safe as the markets assume?
This was not supposed to happen. The spread between the 2Y Treasury yield (which is soaring 7bps today) and 10Y (higher by 3bps) has plunged back below 120bps. The current cliff-edge has been support for the curve four times in the last 8 years but with GC rates blowing out to decade highs, one wonders if the size of the moves means we break to new regime lows.
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
The only way to reverse rising inequality and break the power of the super-wealthy Financial Aristocracy is to stop using their central-bank issued currencies.
Many well-meaning people want to limit the wealth and power of the super-wealthy, i.e. the Financial Aristocracy/Oligarchy. (For more on the modern class structure, please see America's Nine Classes: The New Class Hierarchy.)
Consumer Confidence among Over-55 Americans is at its lowest since September 2014. On the other hand, confidence among the Under-35 generation is its highest in 9 years (as the lowest income earners saw the largest surge in confidence in history - from 44.2. to 73.4). The 'optimism' gap between young and old Americans has never, ever been greater...
Which is ironic since it is the 55-and-older generation who have record jobs (while those 25-54 have collapsed since the great recession...